On 1st April, 2019, Golden Manufacture Ltd. purchased a plant for GHS 660,000.00 and spent GHS 50,000.00 on shipping and forwarding charges, GH 70,000.00 as import duty, GH10,000.00 for carriage and installation, GHS 5,000.00 as brokerage and GH 5000.00 for an iron pad. It was estimated that the machine will have a scrap value of GHS 50,000 at the end of its useful life which is 25 years. On 1st January, 2020 repairs and renewals of GHS 30,000.00 were carried out.

Required

i. Calculate the total cost of the plant to be allocated to the Plant in Golden Manufacture Ltd Computer System. (7 Marks)

ii Calculate the estimated depreciation for the next five years if Golden Manufacture Ltd uses straight line basis of depreciation. (5 Marks)